2025/26 Federal Budget Response

WEDNESDAY, 26 MARCH 2025

The 2025/26 pre-election federal budget handed down overnight focusses on five key priorities:

·       Delivering responsible cost of living relief

·       Strengthening Medicare

·       Making it easier to buy and rent a home

·       Investing in every stage of education

·       Building a stronger economy

But what does this budget mean for our region, spanning from Toowoomba, stretching west to the Maranoa and to the boarder. Our area of regional Queensland is poised to continue to deliver for Australia.

Toowoomba's Gross Regional Product (GRP) is projected to continue growing, with the Queensland Government forecasting a solid 2.5% economic growth in 2025-26, which means our region deserves support for key industries in the region, such as agriculture, energy, manufacturing – underpinned by health and education. Highlighting the need for policies and funding that promote sustainable practices, innovation, and job creation.

What do businesses in our region, across industries tell us they need from a federal government to continue growing our region?

Skills gaps and labour shortages

Regional areas face increased labour shortages compared to our city cousins, including workforce attraction, especially in attracting young people and retaining workers in rural areas. ​

Skills development, training and growing our own workforce is priority for the Toowoomba and Surat Basin region. With many new industries and opportunities emerging on our region, having skilled workforce is paramount. Responding to skills needs, particularly in emerging technologies, new industries and digital literacy are a priority for our region.

This budgets commitment of 100,000 Free TAFE places annually, and a new university funding system to provide more university places to support students from under-represented backgrounds to enrol in universities and complete their degrees is welcome, but we need a diverse long-term approach to the skills gaps and labour shortages affecting all industries across the country.

One of the largest labour shortage areas we have as a region is in health care. Strong healthcare is the bedrock of a liveable community. One we need to get right if we are going to continue to attract more residents and investment in industry to our region.  The government has committed to spend an extra $8.4 billion over 5 years to improve the health system, pledging ‘the single largest investment in Medicare since its creation over 40 years ago’, with $7.9 billion over four years to expand bulk billing to deliver an additional 18 million bulk billed GP visits each year. The intent is to have 9 out of 10 GP visits bulk billed by 2030.

Regional infrastructure

The budget outlines a $7.2 billion investment in the Bruce Highway, which is a critical transport route through Queensland. This investment aims to improve safety and efficiency on this major highway.

TSBE will continue to advocate for investment in upgrading the Warrego Highway, as the second most trafficked highway in Queensland (behind the Bruce). Currently, the Warrego Highway, particularly the reduced capacity of the Bremer River Bridge has our state in a chokehold.

Moving almost 6,000 heavy vehicles per day, the Warrego is the most critical freight route for heavy vehicles.

Carrying agricultural, construction, defence, and resources cargo connecting the Port of Brisbane to Toowoomba, Surat Basin, South-West, and Central-West regions of Queensland, and beyond to connecting routes linking Darwin and Melbourne. 

It remains essential that both out federal state governments prioritise a Bremer River Bridge solution.

The Government is providing $17.1 billion over ten years for new and existing road and rail projects. With a notable omission in this budget of the Inland Rail. It remains imperative for our region to have diversified transport corridors, and we look forward to continuing our advocacy to ‘Get it to Gowrie’ – as Inland Rail is vital for Queensland.              

With the Federal Election on the near horizon, we look forward to hearing the opposition response this week. TSBE will continue to advocate for investment in our region, in sustaining our economy, enabling infrastructure and building our regional capacity.